| Fully agree. For some observations to back up your view: A quick market analysis (aka, a Google search) finds this video ( http://www.youtube.com/watch?v=0weojd1crNQ ) which shows how manually intensive it is to make a custom dress shirt. That comes from Deo Veritas. The cheapest shirt they offer is $50. The shirt is made in Hong Kong, and takes several weeks to deliver. The FAQ says USPS charges $15 to send a first class package to Hong Kong, so with profit I expect the shirt costs about $25 to manufacture. Checking now, you can't make shirts in Asia and have them shipped to the US within 48 hours at that price point. FedEx International Economy (48 hour delivery) for the shirt costs $50 from Hong Kong to San Francisco. Which means you'll need to make it in the US, or more likely Mexico. Which is why you need to get $100 million to make this idea work. You'll need to set up a maquiladora just across the border, get the building and equipment, set up a supply chain for the fabric, and plan for enough sales to be able to make the investors happy. Minimum wage for garment workers in Mexico is about US$6/hour. Minimum wage in Hong Kong is under $4/hour. Assuming most of the $25 is in labor costs in Hong Kong, that same basic shirt would cost about $35 to make in Mexico. This is above your price point. More expensive shirts take more time to make. Once the labor differential between Mexico and Asia exceeds $60 (the price for FedEx international priority), your Asian competitors can undercut you. FWIW, I have no idea if these numbers are right. I have no expertise in this field. But if you (the OP, not rufusjones) can't do this sort of back-of-the-envelope calculations, then perhaps you shouldn't enter this business. |
Really, a functioning brain stem is all you need. If this were a workable business model, you could get them at Walmart, because they can get stuff made cheaper than anyone else thanks to their selling clout.